THE government’s decision to set up an economic action council (EAC) yesterday to address economic woes is timely.

According to Prime Minister Muhyiddin Yassin, the new EAC members will consist of few ministries, such as International Trade and Industry (Miti), Finance (MOF), Prime Minister’s Department (Economy). It also includes other distinguished individuals, such as Bank Negara governor and other experts.

Looking at current situation, the country’s economic condition is volatile and vulnerable to risks because of the drop in oil prices and the impact of Covid-19, hence the EAC members should be widen not only among economic experts but also industrial players, particularly in tourism and manufacturing sectors.

In this regard, the representative from Federation of Malaysian Manufacturers (FMM) and other tourism associations, such as Matta, MAH and Mita, should be considered as well since those associations get involved directly in such industries and feel the impact of economic slowdown.

Furthermore, based on data by the Department of Statistic, the economy grew 3.6% in the fourth quarter of 2019. The growth was mainly contributed by services and manufacturing sectors which recorded 58.6% and 22.1% respectively.

In other words, even though growth has declined dramatically, both the services and manufacturing sectors still played a pivotal role and are a backbone for our economy.

From this standpoint, the involvement of industrial players in EAC is really important to get the right and constructive advice for the government to come out with effective economic solution in the near future. – March 12, 2020.  

* Dr Ahmad Shahir Abdul Aziz reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.